2018 Increase for Lifetime Exemption and Gift Tax Annual Exclusion

The “lifetime exemption amount” is the amount you can give to non-charitable beneficiaries at death or during life without incurring estate or gift taxes (both of which are imposed at a flat rate of 40%).  The annual exclusion amount is the additional amount you can give every year to as many non-charitable beneficiaries as you’d like without eating into your lifetime exemption.

In 2017, the annual exclusion amount is $14,000 and the lifetime exemption amount is $5,490,000.  These amounts are adjusted periodically for inflation.  In 2018, the annual exclusion is scheduled to increase to $15,000 and the lifetime exemption is scheduled to increase to $5,600,000. 

Please let us know if you have any questions about the potential gift tax consequences of gifts you have made or plan to make in 2017 and beyond.